Avanti Mining Inc. (TSXV:AVT) entered into a binding and committed term sheet with Resource Capital Fund VI L.P. for a preconstruction loan of US$40 million.
As quoted in the press release:
Funding of the US$40 million will take place in multiple tranches. The first tranche of US$10 million will be advanced upon receipt of shareholder approval of the loan transaction with the remaining US$30 million to be advanced in three tranches of US$10 million each on an agreed schedule and upon satisfaction of certain conditions. The investment committee of RCF has approved the term sheet and closing of the PC Loan is subject to satisfactory completion of final loan documents, approval of the shareholders of Avanti, approval of the TSX-V and other customary conditions. There is no certainty that the transaction will close successfully or that the conditions will be met.
Avanti Mining President & CEO, Mark Premo, said:
We appreciate the continued support of RCF in financing the Kitsault project. This new financing will substantially de-risk the project with permitting and detailed engineering activities preceding construction start up next year.